Today, Treasury and the IRS issued proposed regulations making various changes to final and temporary regulations under section 367(a) and (d).  The proposed regulations would eliminate the exception in the temporary section 367(d) regulations for transfers of foreign goodwill.  The proposed regulations would also generally limit the scope of property eligible for the active trade or business exception under section 367(a) to certain tangible property and financial assets.  As a result, upon an outbound transfer of foreign goodwill or going concern value, a U.S. transferor will be subject to either current gain recognition under section 367(a)(1) or the tax treatment provided under section 367(d).  According to the preamble, Treasury and the IRS “have concluded that the taxpayer positions and interpretations described in. . . the preamble raise significant policy concerns and are inconsistent with the expectation, expressed in legislative history, that the transfer of foreign goodwill or going concern value developed by a foreign branch to a foreign corporation was unlikely to result in abuse of the U.S. tax system.”  The proposed regulations also would permit taxpayers to elect to apply section 367(d) to certain goodwill and going concern value even if the taxpayer takes the position that such items are not section 936(h)(3)(B) intangibles and would eliminate the rule that limits the useful life of intangible property to 20 years.  The regulations are generally proposed to apply to transfers occurring on or after September 14, 2015.